{"id":554471,"date":"2021-12-09T14:01:27","date_gmt":"2021-12-09T14:01:27","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/09\/state-privatization-program-in-full-swing-cairo-hosts-lebanese-israeli-leaders-annual-urban-inflation-falls-to-5-6-in-november\/"},"modified":"2021-12-09T14:01:27","modified_gmt":"2021-12-09T14:01:27","slug":"state-privatization-program-in-full-swing-cairo-hosts-lebanese-israeli-leaders-annual-urban-inflation-falls-to-5-6-in-november","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/09\/state-privatization-program-in-full-swing-cairo-hosts-lebanese-israeli-leaders-annual-urban-inflation-falls-to-5-6-in-november\/","title":{"rendered":"State privatization program in full swing + Cairo hosts Lebanese, Israeli leaders + annual urban inflation falls to 5.6% in November"},"content":{"rendered":"

We close out a busy week, with a very busy Thursday that spells a boom for our capital markets<\/strong>, ladies and gentlemen, with Abu Qir Fertilizers completing its stake sale and CI Capital getting the nod for its acquisition bid on a quarter of Cleopatra Hospitals Group. We also have good news on the inflation front as well.<\/p>\n

But before we dive into it, it\u2019s the 200th issue of EnterprisePM<\/strong>. And while not many of you readers may be counting, it means a lot to us that you\u2019ve kept reading us these ten months. We hope to keep you guys updated and entertained in the afternoon for many more to come.<\/p>\n

THE BIG STORIES TODAY-<\/strong><\/p>\n

<\/a> Abu Qir Fertilizers completed the sale of 10% of its shares for EGP 2.25 bn<\/strong> to regional, international, and local institutional investors<\/strong>, according to a statement on the bourse today<\/a>. The company\u2019s second offering on the EGX was priced at EGP 17.8 per share. Abu Qir\u2019s shares surged 20% on the news today, closing at EGP 22.11 and giving it a market cap of EGP 27.9 bn.<\/p>\n

State privatization program revived:<\/strong> The sale, which follows the IPO of state e-payments giante-finance<\/a>, indicates that the long-dormant state privatization program is in full swing. Abu Qir had pushed back<\/a> the secondary stake sale several times since first announcing it in 2018.<\/p>\n

Next up is football club Ghazl El Mahalla<\/strong> is also set to make its debut on the EGX in a \u201cmicro-IPO\u201d in two weeks<\/a>.<\/p>\n

Advisors<\/strong>:<\/strong> EFG Hermes acted as joint global coordinator and bookrunner on behalf of the selling shareholders: the National Investment Bank, Industrial Development Authority, Al Ahly Capital Holding, and Chemical Industries Holding Company. Renaissance Capital was joint financial advisor and bookrunner. CI Capital and Al Ahly Pharos were also tapped as underwriters on the transaction. <\/sup><\/p>\n

<\/a> Also making a splash in capital markets is the Financial Regulatory Authority greenlighting CI Capital\u2019s bid to acquire 26.21% of Cleopatra Hospitals Group<\/strong>, according to an FRA statement<\/a>(pdf)<\/a> to the bourse this morning. MCI Capital, the CI Capital subsidiary that\u2019s executing the acquisition, has offered to purchase the shares at EGP 5 apiece. Cleopatra\u2019s shares fell 1.1% to EGP 4.65 at closing time today.<\/p>\n

Who\u2019s selling: <\/strong>Creed Healthcare, which owns 37.9% of CHG through its subsidiary Care Healthcare, has agreed to sell an 8-12% stake in the company from its holdings (126 mn-192 mn shares) to MCI, CHG\u2019s corporate strategy and IR director Hassan Fikry told us yesterday<\/a>. Some 62% of the company\u2019s shares are held by \u201cothers,\u201d according to the company\u2019s investor deck, which notes that key freefloat shareholders include Franklin Templeton Investments, VanEck, Norges Bank, Wasatch Funds, and Consilium Investment Management.MCI will likely acquire the rest of the shares through the EGX.<\/p>\n

<\/a> Annual urban inflation <\/strong>continued <\/strong>to decline in November, dipping to 5.6% <\/strong>from 6.3% in October<\/a>, as prices of fruits, vegetables, meat and poultry dipped from the month prior, according to data released by Capmas today<\/a>. On a monthly basis, headline inflation rose ever-so-slightly by 0.1%, following October\u2019s 1.1% rise. The drop was expected, with analysts, including Al Ahly Pharos\u2019 Radwa El Swaify telling us the drop was expected due to the base effect following months of rising prices. .<\/p>\n

Interest rates under review next week:<\/strong> The Central Bank of Egypt\u2019s Monetary Policy Committee will hold its final meeting for the year to review interest rates on Thursday, 16 December. Look to our poll of analysts and economists on Sunday\u2019s EnterpriseAM.<\/p>\n

^^We\u2019ll have more details <\/strong>on these stories and others in Sunday\u2019s EnterpriseAM<\/strong>.<\/p>\n

** CATCH UP QUICK <\/strong>on the other top stories from today\u2019s EnterpriseAM:<\/p>\n